IDEAS home Printed from https://ideas.repec.org/p/mad/wpaper/2015-098.html
   My bibliography  Save this paper

Technology Import, R and D Spillover and Export: A Study of Automobile Sector in India

Author

Listed:
  • Santosh K. Sahu

    (Madras School of Economics)

  • K. Narayanan

    (Department of Humanities and Social Sciences, Indian Institute of Technology Bombay, Powai, Mumbai)

Abstract

We examine the importance of a firm’s R and D activity, technology import and intra-sectoral R and D spillovers on the decision to export and export intensity using firm level panel data for the Indian automobile sector from 2000-2014. R and D and technology import activities are found to be important determinants of export activity. There is evidence that R and D spillovers exert positive effects on firms’ export intensity and decision to export. In addition to these results, firm age and size are nonlinearly related to export decision and export intensity. Energy efficiency plays important role in export behavior for firms that are continuously exporting and those who are exporting at least for one year.

Suggested Citation

  • Santosh K. Sahu & K. Narayanan, 2015. "Technology Import, R and D Spillover and Export: A Study of Automobile Sector in India," Working Papers 2015-098, Madras School of Economics,Chennai,India.
    • Handle: RePEc:mad:wpaper:2015-098
    as

    Download full text from publisher

    File URL: http://www.mse.ac.in/wp-content/uploads/2016/09/working-paper-98.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Julio Rosa & Pierre Mohnen, 2013. "Doing R&D in a Closed or Open Mode: Dynamics and Impacts on Productivity," CIRANO Working Papers 2013s-42, CIRANO.
    2. Narayanan, K., 1998. "Technology acquisition, de-regulation and competitiveness: a study of Indian automobile industry," Research Policy, Elsevier, vol. 27(2), pages 215-228, June.
    3. Mark E. Doms & J . Bradford Jensen, 1998. "Comparing Wages, Skills, and Productivity between Domestically and Foreign-Owned Manufacturing Establishments in the United States," NBER Chapters, in: Geography and Ownership as Bases for Economic Accounting, pages 235-258, National Bureau of Economic Research, Inc.
    4. James R. Markusen, 1995. "The Boundaries of Multinational Enterprises and the Theory of International Trade," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 169-189, Spring.
    5. Delgado, Miguel A. & Farinas, Jose C. & Ruano, Sonia, 2002. "Firm productivity and export markets: a non-parametric approach," Journal of International Economics, Elsevier, vol. 57(2), pages 397-422, August.
    6. Krugman, Paul, 1979. "A Model of Innovation, Technology Transfer, and the World Distribution of Income," Journal of Political Economy, University of Chicago Press, vol. 87(2), pages 253-266, April.
    7. Guilkey, David K. & Murphy, James L., 1993. "Estimation and testing in the random effects probit model," Journal of Econometrics, Elsevier, vol. 59(3), pages 301-317, October.
    8. Alessandro Sterlacchini, 2001. "The determinants of export performance: A firm-level study of Italian manufacturing," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 137(3), pages 450-472, September.
    9. Sahu, Santosh Kumar & Narayanan, K., 2013. "Exports and Participation in Clean Development Mechanism [CDM] in Technology Intensive Industries in India," MPRA Paper 50745, University Library of Munich, Germany.
    10. Bernard, Andrew B. & Bradford Jensen, J., 1999. "Exceptional exporter performance: cause, effect, or both?," Journal of International Economics, Elsevier, vol. 47(1), pages 1-25, February.
    11. Holger Görg & Eric Strobl, 2016. "Multinational Companies And Productivity Spillovers: A Meta-Analysis," World Scientific Book Chapters, in: MULTINATIONAL ENTERPRISES AND HOST COUNTRY DEVELOPMENT Volume 53: World Scientific Studies in International Economics, chapter 8, pages 145-161, World Scientific Publishing Co. Pte. Ltd..
    12. Fagerberg, Jan, 1988. "International Competitiveness: Errata," Economic Journal, Royal Economic Society, vol. 98(393), pages 1203-1203, December.
    13. Fagerberg, Jan, 1988. "International Competitiveness," Economic Journal, Royal Economic Society, vol. 98(391), pages 355-374, June.
    14. Greenaway, David & Sousa, Nuno & Wakelin, Katharine, 2004. "Do domestic firms learn to export from multinationals?," European Journal of Political Economy, Elsevier, vol. 20(4), pages 1027-1043, November.
    15. Wakelin, Katharine, 1998. "Innovation and export behaviour at the firm level," Research Policy, Elsevier, vol. 26(7-8), pages 829-841, April.
    16. Roberts, Mark J & Tybout, James R, 1997. "The Decision to Export in Colombia: An Empirical Model of Entry with Sunk Costs," American Economic Review, American Economic Association, vol. 87(4), pages 545-564, September.
    17. repec:bla:jecsur:v:12:y:1998:i:3:p:247-77 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Santosh Kumar Sahu & Sunder Ramaswamy & Abishek Choutagunta, "undated". "Export Performance, Innovation, and Productivity in Indian Manufacturing Firms," Working Papers 2017-159, Madras School of Economics,Chennai,India.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Salvador Barrios & Holger Görg & Eric Strobl, 2003. "Explaining Firms’ Export Behaviour: R&D, Spillovers and the Destination Market," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 65(4), pages 475-496, September.
    2. Marco Grazzi & Nanditha Mathew & Daniele Moschella, 2021. "Making one’s own way: jumping ahead in the capability space and exporting among Indian firms," Journal of Evolutionary Economics, Springer, vol. 31(3), pages 931-957, July.
    3. Franco, Chiara & Sasidharan, Subash, 2010. "MNEs, technological efforts and channels of export spillover: An analysis of Indian manufacturing industries," Economic Systems, Elsevier, vol. 34(3), pages 270-288, September.
    4. Tavassoli, Sam, 2013. "The Role of Product Innovation Output on Export Behavior of Firms," Working Papers 2013/05, Blekinge Institute of Technology, Department of Industrial Economics.
    5. R Harris & Q Li, "undated". "Exporting, R&D and Absorptive Capacity in UK Establishments: Evidence from the 2001 Community Innovation Survey," Working Papers 2006_19, Business School - Economics, University of Glasgow.
    6. Chiara Franco & Subash Sasidharan, 2009. "MNEs and Export Spillovers : An Analysis of Indian Manufacturing Industries," Trade Working Papers 22938, East Asian Bureau of Economic Research.
    7. Richard Harris & John Moffat, 2011. "R&D, Innovation and Exporting," SERC Discussion Papers 0073, Centre for Economic Performance, LSE.
    8. Armando Garcia Pires, 2012. "International trade and competitiveness," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 50(3), pages 727-763, August.
    9. Marco Grazzi & Nanditha Mathew & Daniele Moschella, 2017. "Efficiency, innovation, and imported inputs: determinants of export performance among Indian manufacturing firms," LEM Papers Series 2017/09, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    10. Narayanan K, 2008. "Technology Sourcing and Internationalisation of IT firms in India," Working Papers id:1703, eSocialSciences.
    11. Greenaway, David & Görg, Holger, 2002. "Much Ado About Nothing? Do Domestic Firms Really Benefit from Foreign Investment?," CEPR Discussion Papers 3485, C.E.P.R. Discussion Papers.
    12. Francesco Serti & Chiara Tomasi, 2008. "Self-Selection and Post-Entry Effects of Exports: Evidence from Italian Manufacturing Firms," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 144(4), pages 660-694, December.
    13. Volpe Martincus, Christian & Carballo, Jerónimo, 2010. "Beyond the average effects: The distributional impacts of export promotion programs in developing countries," Journal of Development Economics, Elsevier, vol. 92(2), pages 201-214, July.
    14. Alvarez, Roberto, 2007. "Explaining Export Success: Firm Characteristics and Spillover Effects," World Development, Elsevier, vol. 35(3), pages 377-393, March.
    15. Q Li & S Girma, "undated". "Exporting, FDI, and Labour Demand Adjustment: Evidence from the UK Manufacturing," Working Papers 2006_18, Business School - Economics, University of Glasgow.
    16. Alexander Eickelpasch & Alexander Vogel, 2010. "Determinants of the export behaviour of German business services companies," The Service Industries Journal, Taylor & Francis Journals, vol. 31(4), pages 513-526, May.
    17. Jaya Prakash Pradhan & Mohammad Zohair & Mallikarjun V. Alagawadi, 2013. "Regional Policies, Firm Characteristics and Exporting in the Indian State of Karnataka," Foreign Trade Review, , vol. 48(1), pages 45-81, February.
    18. Van Biesebroeck, Johannes, 2005. "Exporting raises productivity in sub-Saharan African manufacturing firms," Journal of International Economics, Elsevier, vol. 67(2), pages 373-391, December.
    19. Carlos Enrique Cardoso Vargas, 2017. "Does the type of neighbor matter? Heterogeneous export spillovers on domestic companies in Mexico," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 32(2), pages 255-292.
    20. Correa, Paulo & Dayoub, Mariam & Francisco, Manuela, 2007. "Identifying supply-side constraints to export performance in Ecuador : an exercise with Investment Climate Survey data," Policy Research Working Paper Series 4179, The World Bank.

    More about this item

    Keywords

    Decision to export; Export intensity; Indian automobile sector; R and D intensity; Technology import intensity;
    All these keywords.

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mad:wpaper:2015-098. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Geetha G (email available below). General contact details of provider: https://edirc.repec.org/data/mseacin.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.